UK Autumn Budget 2024: Labour’s Plan for UK Economic Growth and Public Spending

What could be in the budget and when will it be released?

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Labour’s first budget will be presented by Chancellor Rachel Reeves on Wednesday, October 30.

She has already issued a warning that “difficult decisions” on taxes, spending, and benefits will be involved.

The “tough” budget will “focus on rebuilding our country,” according to Prime Minister Sir Keir Starmer.

What’s the budget?

A budget statement is presented to members of the House of Commons annually by the chancellor of the exchequer, who is in control of the government’s finances. It also involves important choices for the funding of public services like the police, schools, and health care.

Prior to the general election in March 2024, the final Budget was presented by former Conservative Chancellor Jeremy Hunt.

What time is the speech and when is the autumn budget?

The autumn budget for 2024 is scheduled for Wednesday, October 30. Typically, the budget speech begins at 12:30 UK time and lasts for approximately one hour. Both the BBC News website and the BBC player will carry it live.

As soon as Reeves takes a seat, Rishi Sunak, the leader of the Conservative Party, who is currently leading the opposition, will respond to the Budget.

What is the state of the UK economy?

UK economy

 

The government has stated time and time again that increasing economic growth is its top objective.

An expanding economy typically results in higher consumer spending, the creation of new jobs, higher taxation, and better wage increases for employees. In August, the UK economy resumed its modest growth after stalling in June and July.

 

The Conservatives dispute Reeves’ claim that Labour had “inherited the worst set of circumstances since the Second World War” about government finances when it came to office in July. Reeves would need to raise an additional £16 billion on top of the £9 billion in tax increases outlined in the Labour manifesto, according to influential think tank the Institute for Fiscal Studies (IFS), if the government is to fulfil its pre-election pledges.

What could be included in the budget?

income taxnational insurancevalue-added tax (VAT).

Labour pledged during the election that it would not raise taxes on “working people” and that it would not hike income tax, national insurance (NI), or value-added tax (VAT).

What takes place following the speech on the budget?

Alongside the Budget Address, a report is released by the Treasury, the government agency responsible for the economy and public spending. It provides further information regarding the announced initiatives and their associated costs.

An impartial evaluation of the state of the UK economy is also produced by the independent Office for Budget Responsibility (OBR), which keeps tabs on government expenditure.

Budgetary chaos as multiple government agencies are unable to reach a consensus on expenditure decisions by the deadline

Despite talks dating back to July, several ministries have yet to reach a consensus with the Treasury on the magnitude of savings they are expected to achieve over the next two years. 

All significant measures agreed upon for the budget were supposed to be forwarded to the Office for Budget Responsibility (OBR), the spending watchdog, by Wednesday’s close of play.

As recently as Wednesday evening, at least one department that has yet to settle had anticipated reaching a deal with the Treasury, indicating last-minute difficulty.

The Treasury downplays the importance of the delay, claiming that while it is not unprecedented, concerns about the budget’s outcome remain strong in some areas of the government.

Treasury denies that departments who have not reached a budget agreement prior to the Chancellor’s announcement on October 30 are being “forced” to make settlements. It is believed that at least three cabinet members raised concerns about the budget with Sir Keir directly, bypassing Ms Reeves.

 

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